Slim’s Pickings: Don’t Invest Like the Richest Man in the World

You'd be better off avoiding these five Carlos Slim holdings

The New York Times Co.

Industry: Publishing
Stake: $114.6 million
52-Week Returns: +47%

Just as Warren Buffett and countless other investors have taken a liking to newspapers in recent years, so has Carlos Slim.

In 2011, the investor raised his stake in The New York Times Co. (NYSE:NYT) to more than 8%. Slim also loaned the company $250 million during the downturn of 2009 and holds a warrant to buy nearly 16 million shares as a result.

So far, NYT’s returns have justified the increased stake. The stock has climbed nearly 50% during the past 12 months, including a market-doubling 12% gain to kick off 2013. The latest push came amid news that company is again planning to putThe Boston Globe up for sale — just the latest move to unload assets that aren’t a part of its core business.

Still, the newspaper industry is hardly a promising one as the medium continues to struggle to stay relevant in an increasingly digital age. The New York Times Co. also must deal with a huge pile of debt, along with operating costs that are rising faster than sales.

That rosy picture doesn’t come cheap, at 22 times next year’s earnings.